Report Prepared by: Jennifer Flachman, Senior Management Analyst/PIO
Title
SUBJECT: Approval of a First Amendment with California Public Policy Group (CPPG) for an Additional Nine (9) Month Term for Legislative Advocacy, Consulting, and Grant Seeking and Writing Services for an Additional Amount of $90,500 for a Total Contract Amount not to Exceed $209,500
REPORT IN BRIEF
Considers approving a First Amendment with California Public Policy Group (CPPG) for an additional nine-month term, extending the contract expiration date from September 30, 2026, to June 30, 2027. The First Amendment will also add an additional compensation of $90,500 for services rendered from October 1, 2026, to June 30, 2027, bringing the total contract amount to $209,500.
RECOMMENDATION
City Council - Adopt a motion:
A. Approving a first amendment with California Public Policy Group (CPPG) for legislative advocacy, consulting, and grant writing services to extend the term of the contract to June 30, 2027; and,
B. Approving the additional compensation amount of $90,500 with a total contract amount not to exceed $209,500; and,
C. Authorizing the City Manager to execute the necessary documents.
Body
ALTERNATIVES
1. Approve, as recommend by Staff; or,
2. Approve, subject to other than recommended by Staff; or,
3. Deny; or,
4. Refer to Staff for reconsideration of specific items; or,
5. Continue to a future meeting.
AUTHORITY
Merced Municipal Code Title 3, Article IV - Public Works Contracts.
CITY COUNCIL PRIORITIES
As provided for in the 2026-27 Adopted Budget.
DISCUSSION
The City entered into an agreement with California Public Policy Group (CPPG) in October 2025 to provide legislative advocacy, consulting, and grant seeking and writing services.
CPPG provides the City with legislative advocacy and policy support at the state and federal levels. This includes monitoring legislation, budget actions, regulatory developments, and other policy matters that may affect City operations, funding, or City Council priorities. CPPG provides updates on relevant legislation, identifies potential impacts to the City, assists with developing recommended positions and responses, and represents the City's interests with legislators, legislative staff, state and federal agencies, and other government partners.
Legislative advocacy services may also include preparing bill analyses, position letters, talking points, testimony, and briefing materials; assisting with state and federal funding requests; coordinating meetings with elected officials and agency representatives; and advising the City on legislative strategy and emerging policy issues. CPPG also provides legislative updates and briefings to City staff, the Law and Legislation Committee, and City Council as needed.
In addition to legislative advocacy services, CPPG provides the City with grant seeking and writing services. CPPG works across City departments to identify state and federal funding opportunities that align with City Council priorities, evaluate eligibility and competitiveness, assist with grant development and submission, and track upcoming funding opportunities.
The City's current approach to grant development pairs CPPG's grant research and funding expertise with the subject matter expertise of City staff. Individual departments understand their operational needs, projects, costs, timelines, and service priorities, while CPPG provides broader research into available funding programs, grant requirements, application strategy, and state and federal funding opportunities. This allows the City to pursue funding across a wide range of service areas without relying on a single individual to maintain specialized knowledge of every departmental function and funding program.
Through the first year of the agreement, CPPG and City staff have established a regular process for reviewing funding opportunities with departments and determining which opportunities best align with City priorities, departmental needs, and planned projects. This process includes consideration of eligibility, competitiveness, matching requirements, ongoing obligations, project readiness, staff capacity, and the potential benefit to City services and the community before resources are committed to an application.
As of August 2026, grant activity supported by CPPG includes:
Grant Funding Awarded
• Energy Efficiency and Conservation Block Grant - $140,760
• Art in Parks, General Vang Pao Park Mural - $77,000
• CARB Planning and Capacity Building, Connect South Merced - $499,725
Total Grant Funding Awarded: $717,485
Grant Applications Submitted and Pending
• Active Transportation Program, Cycle 8, Safe Routes to Schools - $7,684,000
Anticipated Award Notification: Statewide funding recommendations are expected November 2, 2026, with California Transportation Commission adoption anticipated December 3-4, 2026.
• Assistance to Firefighters Grant, Hazardous Materials Technician-Level Training - $408,000
• Law Enforcement Mental Health and Wellness Act (LEMHWA), Merced Officer Wellness Enhancement Initiative - $250,000
• Urban Greening Grant, Merced Regional Sports Complex (CP-42) - $5,000,000
Anticipated Award Notification: December 2026.
Total Grant Funding Pending: $13,342,000
In addition to submitted applications, CPPG continues to work with City departments to develop and evaluate additional funding opportunities. Current efforts include potential funding for the McNamara Park Revitalization Project, Merced Regional Sports Park, South Merced community planning and resilience efforts, transportation and roadway safety improvements, public safety initiatives, economic development, and other infrastructure projects.
As part of this coordinated approach, CPPG also monitors upcoming state and federal funding programs and grant cycles, providing departments with information about potential opportunities and allowing staff to better position projects for future funding. This citywide approach provides departments with grant support while maintaining the involvement of the staff members who understand the projects and will ultimately be responsible for their development and implementation.
The proposed First Amendment will extend CPPG's services through June 30, 2027. The additional nine-month term will maintain continuity in the City's legislative advocacy efforts and allow CPPG to continue monitoring and responding to legislative and budget matters during the state and federal legislative cycles. The extension will also allow CPPG and City staff to continue developing pending and future grant opportunities and maintain the coordinated grant process established across City departments.
Extending the agreement through the end of the fiscal year provides continuity for both the City's legislative advocacy and grant development efforts while allowing the City to continue evaluating the effectiveness of these services and future needs as part of the fiscal year 2027-28 budget process.
IMPACT ON CITY RESOURCES
There is sufficient funding in the City Manager professional services account line with $74,160 budgeted for legislative advocacy consulting and $43,260 budgeted for grant writing consulting for fiscal year 2026/2027.
ATTACHMENTS
1. CPPG First Amendment
2. CPPG Original Services Agreement